Tesla Reportedly Developing New Compact SUV, Expected to Be More Affordable

On April 9, informed sources revealed Tesla is developing a new, smaller, more affordable electric SUV. Tesla has been reaching out to suppliers in recent weeks to hash out details of the compact SUV plan—this will be an all-new vehicle, not a redesign of its existing Model 3 or Model Y. Sources noted the SUV will be built in China; another source added Tesla intends to ramp up production in the U.S. and Europe later. Measuring 4.28 meters (roughly 14 feet) long, it’s significantly shorter than Tesla’s top-selling Model Y SUV (around 15.7 feet). Back in 2024, Musk scrapped the highly anticipated low-cost EV project, shifting the company’s focus to robotaxis and humanoid robots. A key question: Does this latest push for a smaller SUV signal a strategic pivot back to mass-market Level 4 autonomous EVs, or does it better align with Tesla’s vision for fully self-driving cars? Per sources and a Tesla employee, the model could have dual uses. The employee declined to confirm or deny specific details about the vehicle but noted Tesla’s current goal is to build a car that’s autonomous yet still offers a manual driving option. (Jinse)